IEA forecasts one in four cars sold globally in 2025 will be electric as EV sales hit new highs
A new International Energy Agency (IEA) report suggests that electric vehicle (EV) sales continue to grow, with more than 25% of cars sold worldwide this year forecast to be electric.
The IEA’s annual Global EV Outlook study also reported that sales of electric cars are on track to surpass 20 million in 2025.
Despite significant uncertainties, the IEA believes the market share for EVs is on course to exceed 40% by 2030 as they become increasingly affordable in more markets.
Sales records broken
According to the report, global sales of electric cars have continued to break records as sales exceeded 17 million globally in 2024, pushing the EV share of the car market above 20% for the first time.
Despite recent economic headwinds, EV sales have risen 35% year-on-year in the first three months of 2025 with all major markets and many others setting new records for first-quarter sales.
China remained the global leader, with electric cars accounting for almost half of all automobile sales in the country during 2024.
The 11 million units sold in China last year equalled the total number sold globally just two years earlier.
Emerging markets
IEA executive director Fatih Birol said emerging markets in Asia and Latin America had also become new centres of growth, with total electric car sales across those regions surging by more than 60% in 2024.
EV sales in the US rose by approximately 10% year-on-year, representing more than one in ten of all cars sold.
While sales in Europe stagnated as subsidy schemes and other supportive policies wound down, EVs still held a market share of around 20% across the region.
Favourable pricing
The average price of a battery EV fell globally in 2024 as competition tightened and battery costs fell.
Even without purchase incentives, two-thirds of all electric cars sold in China last year were priced lower than their petrol or diesel equivalents.
However, the purchase price gap persisted in many other regions.
The average battery electric car was still around 20% more expensive in Germany than its conventional counterpart, while the difference remained closer to 30% in the US.
Mr Birol noted that, even as prices continue to fall, uncertainty around global economic growth and the evolution of trade and industrial policy could still affect the overall outlook for EVs.